Budgeting

Budgeting

Recently I ran into an article and it caught my attention. It’s called, “How a Family of Four Manages to Live Well on Just $14,000 Per Year”. Honestly I was impressed and envied them. I don’t know this family and I know every situation and circumstances are different. But millions of American’s are struggling and somehow we all relate to it. Nothing is hiding, we all know how bad US economy is and how families are struggling/surviving. It’s a very difficult time for many families. 

When I read this article, I started thinking what smart people. They use their money wisely and carefully. The whole family was like a team and they understood what was going on and how can they support each other. I believe the number one key to saving money is being one team. And every single person, young or adult should take full responsibility for their action good or bad. I am also one of those American families who have been struggling. My girls and I have been a team and we learned the difference between need and want. And once you get the difference you would be surprise to see how many things we buy not because it was our need but because we wanted it.

            In college I took a class called, consumer education. I learned a lot from it. One of the assignments was to not do grocery shopping for a week and use whatever is left in our fridge and pantry. Every other month or so I do that and believe it or not, most of us do have enough food in our fridge and pantry, we can skip one week grocery shopping easily. Another thing I learned is to write down every single penny you are spending. And at the end of the month sit down and do the math and see how much you spent. It has been almost 3 years now since I took that class and it has been become my habit to write it down everything. Once you have it front of you, you can be your own financial adviser and see how much you are spending and where. 

Every single penny counts. It’s very easy to get off the track, but practice makes perfect and then it becomes a habit. From an article, “They budget $400 for groceries each month and that's it. "Once that $400 is gone, it is gone," she writes. "There are no extra shopping trips made because there is no more money." I believe there are many ways to save money call your utilities company and asked for promotions, use coupons, buy store brands, research before we purchase and be your own financial adviser. You are the one running the house so start thinking how to spend less. There are many small things or changes we can make to save some extra money and that adds up.

I grew up very poor and there were many nights my mother, sisters and I had sleep with empty stomachs. When I think about that time, and compare it to now, I feel rich. Honestly compared too many other nations, many Americans are still doing well. We all know how important money is but our happiness is within us. Money can’t buy happiness. My mother always put us first and she always gave us hope. Even though we were very poor, my mother was very careful when she was talking to us about money. She wanted us to feel love rather than stress about money. And she succeeded. We all know nothing stays the same. All you can do it hope for the best, and for many of us tomorrow will be a better day. Be a team and believe we are all in this together and support each other as much as you can. Here is the link http://finance.yahoo.com/news/how-a-family-of-four-manages-to-live-well-on-just--14-000-per-year-174803218.html. Happy budgeting!